Cities in ‘multiple globalizations’: insights from the upstream oil and gas World City Network

Abstract

The role of cities in the global economy has been studied extensively for the specific case of advanced producer services. Only recently, studies started to broaden the analytical lens and explore the role of cities in 'multiple globalizations' by adding insights from other industries. Apart from showing that different World City Networks (WCNs) are characterized by differing spatial configurations, these studies are incapable of explaining why cities have been articulated into a particular WCN. Building on a case study of Singapore and Jakarta in the WCN of the upstream oil and gas industry, the study demonstrates the potential gained by adding flesh to the study of cities in 'multiple globalizations' through qualitative insights. The findings reveal how very different state roles have contributed to the shape of this particular WCN. The paper thereby illustrates how this recent field of research on cities in 'multiple globalizations' may advance beyond the mere description of city network structures.

Spatial Differentiation of Variegated Capitalisms: A Comparative Analysis of Russian and Australian Oil and Gas Corporate City Networks

“…The connectivity patterns that emerged from our static analysis of intrafirm relationships provide empirical evidence of the processes of globalization, financialization, and the rise of state capitalism. This has also been found in previous studies on the energy sector to explain the positions of global cities (Goerzen, Asmussen, and Nielsen 2013), energy hubs (Toly et al 2012;, national capitals (Toly et al 2012;Breul 2019), and THOFCs (Sigler et al 2019;Verbeek and Mah 2020) at the core of global oil and gas firm networks.…”

“…These goals unite this article with another field of economic geography research that focuses on the geopolitical aspects of the global oil and gas production networks (Stephenson and Agnew 2016). Similarly, our research recognizes the critical relationships between firms and the state that interact in a path-dependent manner, extending the WCN research concerned with the role of the state in the variegated articulation of cities in networks Breul 2019;Indraprahasta and Derudder 2019). In contrast to previous WCN approaches, our framework provides a new approach to understanding the spatial differentiation in distinct geographic, sectoral, and political-economic landscapes, as reflected in variegated city network structures of nations, holding potential for longitudinal and mixed-methods analyses.…”

“…Research on contemporary energy networks demonstrates how economic activities are globally interlinked through energy hub cities in some countries (Aberdeen, Calgary, Cape Town, Houston, Stavanger, Tripoli), while national capitals (Accra, Beijing, Buenos Aires, Jakarta, Moscow) feature prominently in others (Toly et al 2012;Breul 2019;Scholvin, Breul, and Diez 2019). Sectoral city network patterns reflect energy firm locational strategies shaped by needs of firms to hold a physical presence in upstream, midstream, or downstream processes, global limitations and national remit.…”

“…So far, there has been little engagement with world city networks (WCN) research that increasingly uncovers distinct, if not diverging, spatialities of intercity connections as produced by multinational corporations (MNCs). Variegation has been found in all industry sectors (Alderson and Beckfield 2004;Wall and van der Knaap 2011) and in networks of specific industry sectors (Toly et al 2012;Kratke 2014;Breul 2019;Indraprahasta and Derudder 2019), especially advanced producer services (APS) (Taylor and Derudder 2015).…”

“…Though well established as an analytical technique, the theoretical significance of WCN is often interpreted uncritically with regard to how firms globalize and how this varies between institutional contexts (Robinson 2002;Coe et al 2010). While previous studies recognize the role of the state in shaping firm city networks (Brenner 1998;Olds and Yeung 2004;Breul 2019;Indraprahasta and Derudder 2019), WCN has yet to explore how the distinct sectoral economic geographies of the firm locational strategies reflect variegated capitalisms.…”